FOR IMMEDIATE RELEASE
Investor Contact		Media Contact
Mark Feuerbach		Ryan Flaim
Innophos		Sharon Merrill Associates
609-366-1204		617-542-5300
investor.relations@innophos.com		iphs@investorrelations.com

INNOPHOS HOLDINGS, INC. REPORTS

THIRD-QUARTER 2019 RESULTS

CRANBURY, New Jersey - (November 6, 2019) - Innophos Holdings, Inc. (NASDAQ: IPHS) today announced financial results for its third-quarter ended September 30, 2019.

Q3 2019 Highlights

 

•

Sales of $189 million up 2% sequentially but down 4% compared with prior-year quarter

 

•

GAAP Net Income of $6 million, or $0.32 per diluted share, down $8 million from Q3 2018

 

•

Adjusted diluted EPS of $0.45, down 24% year-on-year

 

•

EBITDA of $24 million, down $1 million, or 6% year-over-year

 

•

Adjusted EBITDA of $30 million, flat sequentially but down $3 million or 8% year-on-year; adjusted EBITDA margin of 16%, down 70 basis points compared with the prior year

 

•

Cash flows from operations of $8 million, down $18 million year-on-year

 

•

Free Cash outflow of $2 million, down $6 million year-on-year

Recent Developments

As announced on October 21, 2019, Innophos has entered into a definitive agreement to be acquired by an affiliate of One Rock Capital Partners, LLC, a leading middle-market private equity firm, in an all-cash transaction valued at $32.00 per share, or approximately $932 million, including the assumption of debt. Due to the pending transaction, Innophos will not host an earnings conference call, provide financial guidance or publish supplemental financial presentation slides. Innophos is also withdrawing its previously issued financial guidance for fiscal year 2019.

Q3 2019 Results

Variance $ and Variance % in the following tables and comments may not foot due to rounding

$ Millions except EPS

 

Quarter 3		2019				2018				Variance $				Variance %
Sales			189				197				(8	)			(4	)%
Net Income			6				14				(8	)			(54	)%
Adj. Net Income			9				12				(3	)			(24	)%
EBITDA			24				26				(1	)			(6	)%
Adj. EBITDA			30				32				(3	)			(8	)%
Diluted EPS			0.32				0.71				(0.38	)			(54	)%
Adj. Diluted EPS			0.45				0.58				(0.14	)			(24	)%
Cash from Ops			8				26				(18	)			(69	)%
Free Cash Flow			(2	)			4				(6	)			(141	)%

 

•

Sales of $189 million were 4% below prior year as 1% selling price increases were offset by a 5% volume decline.

 

•

The Q3 2019 volume decline was affected by several factors, including discontinued low-margin nutrition trading business, a general weakening of demand and continued “indirect” tariff impacts.

 

•

GAAP Net Income of $6 million and diluted EPS of $0.32 were down versus the prior year primarily due to a $6 million one-off tax benefit for a partial reversal of tax reform in the prior year period and lower EBITDA.

 

•

During the quarter, the Geismar facility incurred operating issues related to the transition to the company’s new low-cost supply structure, which had a total impact of $6 million, $4 million of which was adjusted out of Q3 results and the remaining $2 million is expected to be adjusted out of Q4 results. The issue was rectified during the quarter and the Geismar plant has been operating at normal rates since mid-September.

 

•

Adjusted EBITDA margin of 16% was down 70 basis points year over year due to lower cost leverage from lower sales volumes. The Q3 Adjusted EBITDA was affected by the aforementioned operating issues, which resulted in the company not realizing any benefits from the value chain repositioning initiative in Q3 as planned.

 

•

Free Cash outflow of $2 million was down $6 million from the prior year period due primarily to payment of a one-off tax charge related to Dutch tax regulations enacted in Q2.

Q3 2019 Segment Financials

 

Q3 Sales		2019 $ Millions				2018 $ Millions				Variance $				Variance %
FHN			105				115				(10	)			(9	)%
IS			73				66				7				11	%
Other			11				16				(5	)			(32	)%
Total IPHS			189				197				(8	)			(4	)%
Q3 Adj. EBITDA		2019 $ Millions				2018 $ Millions				2019 % Margin				2018 % Margin
FHN			18				17				17	%			15	%
IS			10				12				14	%			18	%
Other			1				3				10	%			16	%
Total IPHS			30				32				16	%			16	%

Note: See Adjusted EBITDA reconciliation to EBITDA in the financial tables that follow

 

•

FHN sales declined 9% year over year (price +3%, volume -11%) as price increases were offset by lower volumes due to the discontinuation of low-margin nutrition trading business and softer demand; adjusted EBITDA margins were up 201 basis points compared with Q3 2018 due to higher selling prices and improved sales mix.

 

•

IS sales were up 11% year over year (price +1%, volume +10%) due to higher acid sales and STPP volumes into Latin America that exceeded lower volume effects from “indirect” unfavorable tariff impacts on international sales; adjusted EBITDA margins were down 422 basis points versus a strong prior year quarter due to unfavorable sales mix.

 

•

Other sales were down 32% (price -8%, volume -24%) due to reduced co-product and low grade acid sales volumes; adjusted EBITDA margins were 10%.

Year-to-Date Quarter 3 Results

Variance $ and Variance % in the following tables and comments may not foot due to rounding

$ Millions except EPS

 

YTD Q3		2019				2018				Variance $				Variance %
Sales			566				609				(43	)			(7	)%
Net Income			17				31				(15	)			(47	)%
Adj. Net Income			29				35				(6	)			(17	)%
EBITDA			76				78				(2	)			(2	)%
Adj. EBITDA			90				95				(6	)			(6	)%
Diluted EPS			0.83				1.57				(0.74	)			(47	)%
Adj. Diluted EPS			1.45				1.74				(0.29	)			(17	)%
Cash from Ops			25				35				(10	)			(27	)%
Free Cash Flow			(1	)			(12	)			12				93	%

Year-to-Date Quarter 3 Segment Financials

 

YTD Q3 Segment Sales		2019 $ Millions				2018 $ Millions				Variance $				Variance%
FHN			327				367				(40	)			(11	)%
IS			204				196				8				4	%
Other			35				46				(11	)			(24	)%
Total IPHS			566				609				(43	)			(7	)%
YTD Q3 Segment Adj. EBITDA		2019 $ Millions				2018 $ Millions				2019 % Margin				2018 % Margin
FHN			57				56				18	%			15	%
IS			28				34				14	%			17	%
Other			4				5				11	%			10	%
Total IPHS			90				95				16	%			16	%

Note: See Adjusted EBITDA reconciliation to EBITDA in the financial tables that follow

About the Company

Innophos is a leading international producer of essential ingredients. We partner with world-leading health & nutrition, food & beverage and industrial brands to create science-based solutions that improve quality of life. Our knowledgeable teams apply science to unlock the potential that lies within the blends and formulations that we deliver. Forward thinking and people centric at heart, we execute with purpose and efficiency to create value in everything we do. Headquartered in Cranbury, New Jersey, Innophos has manufacturing operations across the United States, in Canada, Mexico and China. For more information, please visit www.innophos.com ‘IPHS-G’

SOURCE Innophos Holdings, Inc.

###

Financial Tables Follow

Discussion of Non-GAAP Financial Measures

The non-GAAP financial measures in this news release are utilized by management to compare Innophos’ operating performance on a consistent basis. Management believes that these financial measures enhance the overall understanding of the Company’s underlying operating performance trends compared with historical periods. Non-GAAP financial measures should not be considered as a substitute for financial information calculated in accordance with GAAP.

Net debt is a supplemental financial measure that is not required by, or presented in accordance with, US GAAP. The Company believes net debt is helpful in analyzing leverage and as a performance measure for purposes of presentation in this release. The Company defines net debt as total long-term debt (including any current portion) less cash and cash equivalents.

Free cash flow is a supplemental financial measure that is not required by, or presented in accordance with, US GAAP. The Company believes free cash flow is helpful in analyzing the cash flow generating capability of the business and as a performance measure for purposes of presentation in this release. The Company defines free cash flow as net cash provided from operating activities plus cash used for capital expenditures plus cash received from sale leaseback transactions.

EBITDA, adjusted EBITDA, adjusted net income and adjusted diluted EPS are supplemental financial measures that are not required by, or presented in accordance with, US GAAP. The Company believes EBITDA and adjusted EBITDA are helpful in analyzing the cash flow generating capability of the business and as performance measures for purposes of presentation in this release.

Net Working Capital is a supplemental financial measure that is not required by, or presented in accordance with, US GAAP. The Company believes net working capital is helpful in analyzing the effects on the cash flow generating capability of the business and as a performance measure for purposes of presentation in this release. The Company defines net working capital as total current assets less cash and cash equivalents less total current liabilities plus current portion of capital leases.

Operating Working Capital is a supplemental financial measure that is not required by, or presented in accordance with, US GAAP. The Company believes operating working capital is helpful in analyzing the effects on the cash flow generating capability of the business and as a performance measure for purposes of presentation in this release. The Company defines operating working capital as net working capital less taxes less interest.

Safe Harbor for Forward-Looking and Cautionary Statements

This press release contains or may contain forward-looking statements within the meaning of Section 27a of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends these forward-looking statements to be covered by the safe harbor provisions for such statements. Statements made in this press release that relate to our future performance or future financial results or other future events (which may be identified by such terms as “expect”, “estimate”, “anticipate”, “assume”, “believe”, “plan”, “intend’, “may”, “will”, “should”, “outlook”, “guidance”, “target”, “opportunity”, “potential” or similar terms and variations or the negative thereof) are forward-looking statements, including the Company’s expectations regarding the business environment and the Company’s overall guidance regarding future performance and growth. These statements are based on our current beliefs and expectations and are subject to significant risks and uncertainties. Actual results may materially differ from the expectations expressed in or implied by these forward-looking statements. Factors that could cause the Company’s actual results to differ materially include, but are not limited to: (1) the Company’s pending merger with an affiliate of One Rock Capital Partners (2) global macroeconomic conditions and trends; (3) the behavior of financial markets, including fluctuations in foreign currencies, interest rates and turmoil in capital markets; (4) changes in regulatory controls regarding tariffs, duties, taxes and income tax rates; (5) the Company’s ability to implement and refine its Vision 2022 strategic roadmap; (6) the Company’s ability to successfully identify and complete acquisitions in line with its Vision 2022 strategic roadmap and effectively operate and integrate acquired businesses to realize the anticipated benefits of those acquisitions; (7) the Company’s ability to realize expected cost savings and efficiencies from its

performance improvement and other optimization initiatives; (8) the Company’s ability to effectively compete in its markets, and to successfully develop new and competitive products that appeal to its customers; (9) changes in consumer preferences and demand for the Company’s products or a decline in consumer confidence and spending; (10) the Company’s ability to benefit from its investments in assets and human capital and the ability to complete projects successfully and on budget; (11) economic, regulatory and political risks associated with the Company’s international operations, most notably Mexico and China; (12) volatility and increases in the price of raw materials, energy and transportation, and fluctuations in the quality and availability of raw materials and process aids; (13) the impact of a disruption in the Company’s supply chain or its relationship with its suppliers; (14) the Company’s ability to comply with, and the costs associated with compliance with, U.S. and foreign environmental protection laws and (15) the Company’s ability to meet quality and regulatory standards in the various jurisdictions in which it has operations or conducts business. We caution you to consider the important risks and other factors as set forth in the forward-looking statements section and in Item 1A Risk Factors in our most recent Annual Report on Form 10-K, as amended by subsequent reports on Forms 10-Q and 8-K. We do not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.

Additional Information and Where to Find It

In connection with the proposed transaction, the Company expects to file with the SEC and furnish to its stockholders a proxy statement on Schedule 14A, as well as other relevant materials concerning the proposed transaction. Promptly after filing its definitive proxy statement with the SEC, the Company will mail the definitive proxy statement and a proxy card to each stockholder of the Company entitled to vote at the special meeting relating to the proposed transaction. WE URGE INVESTORS TO READ THE PROXY STATEMENT AND THESE OTHER MATERIALS FILED WITH THE SEC CAREFULLY WHEN THEY BECOME AVAILABLE BEFORE MAKING ANY VOTING OR INVESTMENT DECISION BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors will be able to obtain free copies of the proxy statement (when available) and other documents that will be filed by the Company with the SEC at http://www.sec.gov, the SEC’s website, or from the Company’s website (http://www.innophos.com) under the tab “Investor Relations,” then under the heading “Financials” and then under “SEC Filings.” In addition, investors and stockholders may obtain free copies of these documents from the Company by directing a request to Investor Relations, Phone: 1-609-366-1204. Media inquiries can be directed to Ryan Flaim at Sharon Merrill Associates, Phone: 617-542-5300. Media inquiries related to One Rock specifically can be directed to Gasthalter & Co., Phone 212-257-4170.

Participants in the Solicitation

The Company, its directors and certain of its executive officers and other persons may be deemed to be participants in the solicitation of proxies from the Company’s stockholders with respect to the proposed transaction. Information regarding the directors and executive officers of the Company is available in its definitive proxy statement for its 2019 annual meeting, filed with the SEC on April 8, 2019. More detailed information regarding the identity of potential participants, and their direct or indirect interests, by securities, holdings or otherwise, will be set forth in the proxy statement and other materials when they are filed with the SEC in connection with the proposed transaction.

Summary Profit & Loss Statement

INNOPHOS HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statement of Operations (Unaudited)

(Dollars in thousands, except per share amounts or share amounts)

 

		Three Months Ended September 30,								Nine Months Ended September 30,
		2019				2018				2019				2018
Net Sales		$	189,349			$	196,934			$	565,801			$	609,099
Cost of goods sold			156,685				161,706				460,333				495,259
Gross profit			32,664				35,228				105,468				113,840
Operating expenses:
Selling, general and administrative			17,803				19,525				57,505				64,548
Research & development expenses			1,179				1,240				3,751				3,989
Total operating expenses			18,982				20,765				61,256				68,537
Operating income			13,682				14,463				44,212				45,303
Interest expense, net			3,990				3,428				11,580				9,530
Foreign exchange (gain) loss			373				(531	)			(478	)			409
Other income			(5	)			(14	)			(16	)			(42	)
Income before income taxes			9,324				11,580				33,126				35,406
Provision for income taxes			2,873				(2,510	)			16,580				4,155
Net income		$	6,451			$	14,090			$	16,546			$	31,251
Diluted Earnings Per Participating Share		$	0.32			$	0.71			$	0.83			$	1.57
Diluted weighted average participating shares outstanding			19,785,045				19,838,962				19,740,262				19,790,570
Dividends paid per share of common stock		$	0.48			$	0.48			$	1.44			$	1.44
Dividends declared per share of common stock		$	0.48			$	0.48			$	1.44			$	1.44

Adjusted Net Income Reconciliation to Net Income

 

(Dollars in thousands, except EPS)		Three Months Ended September 30,								Nine Months Ended September 30,
		2019				2018				2019				2018
Net Income		$	6,451			$	14,090			$	16,546			$	31,251
Pre-tax Adjustments
Foreign exchange loss (gain)			373				(531	)			(478	)			409
Severance/Restructuring expense			839				1,297				4,088				2,581
M&A related costs			517				45				968				982
Mexico natural gas supply imbalance charges			0				1,857				1,179				1,857
Value chain transition			3,902				2,385				6,240				6,878
Supplier Q418 payment amortization			(2,315	)			0				(4,680	)			0
Other			132				0				595				0
Total Pre-Tax Adjustments			3,448				5,053				7,912				12,707
Income tax effects on Adjustments			1,050				1,515				2,383				3,447
‘18 Tax Reform Partial Reversal / ‘19 Dutch tax charge			0				(5,982	)			6,603				(5,982	)
Adjusted Net Income		$	8,849			$	11,646			$	28,678			$	34,529
Adjusted Diluted Earnings Per Participating Share		$	0.45			$	0.58			$	1.45			$	1.74

Adjusted EBITDA Reconciliation to Net Income

 

(Dollars in thousands)		Three Months Ended September 30,								Nine Months Ended September 30,
		2019				2018				2019				2018
Net Income		$	6,451			$	14,090			$	16,546			$	31,251
Interest expense, net			3,990				3,428				11,580				9,530
Provision for income taxes			2,873				(2,510	)			16,580				4,155
Depreciation & amortization			11,130				10,864				31,776				33,317
EBITDA			24,444				25,872				76,482				78,253
Adjustments
Non-cash stock compensation			1,621				1,152				5,188				4,143
Foreign exchange loss (gain)			373				(531	)			(478	)			409
Severance/Restructuring expense			839				1,297				4,088				2,581
M&A related costs			517				45				968				982
Mexico natural gas supply imbalance charges			0				1,857				1,179				1,857
Value chain transition			3,902				2,385				6,240				6,878
Supplier Q418 payment amortization			(2,315	)			0				(4,680	)			0
Other			132				0				595				0
Adjusted EBITDA		$	29,513			$	32,077			$	89,582			$	95,103
Percent of Sales			15.6	%			16.3	%			15.8	%			15.6	%

Segment Adjusted EBITDA Reconciliation to EBITDA

 

(Dollars in thousands)		Three Months Ended																Three Months Ended
		September 30, 2019																September 30, 2018
		FHN				IS				Other				Total				FHN				IS				Other				Total
EBITDA		$	14,791			$	8,861			$	792			$	24,444			$	14,563			$	8,885			$	2,424			$	25,872
Non-cash stock compensation			917				642				62				1,621				652				456				44				1,152
Foreign exchange loss (gain)			119				—				254				373				67				—				(598	)			(531	)
Severance/Restructuring exp			451				346				42				839				765				440				92				1,297
M&A related costs			517				—				—				517				45				—				—				45
Mexico natural gas supply adj.			—				—				—				—				414				871				572				1,857
Value chain transition			2,352				1,395				155				3,902				909				1,467				9				2,385
Supplier payment amortization			(1,203	)			(880	)			(232	)			(2,315	)			—				—				—				—
Other			72				50				10				132				—				—				—				—
Adjusted EBITDA		$	18,016			$	10,414			$	1,083			$	29,513			$	17,415			$	12,119			$	2,543			$	32,077
		Nine Months Ended																Nine Months Ended
		September 30, 2019																September 30, 2018
		FHN				IS				Other				Total				FHN				IS				Other				Total
EBITDA		$	48,758			$	23,891			$	3,833			$	76,482			$	48,494			$	26,772			$	2,987			$	78,253
Non-cash stock compensation			2,937				2,054				197				5,188				2,345				1,641				157				4,143
Foreign exchange loss (gain)			59				—				(537	)			(478	)			76				—				333				409
Severance/Restructuring exp			2,551				1,327				210				4,088				1,527				922				132				2,581
Inventory fair value adjustment			—				—				—				—				—				—				—				—
M&A related costs			968				—				—				968				968				—				14				982
Mexico natural gas supply adj.			263				553				363				1,179				414				871				572				1,857
Value chain transition			3,761				2,231				248				6,240				2,575				3,685				618				6,878
Supplier payment amortization			(2,434	)			(1,778	)			(468	)			(4,680	)			—				—				—				—
Other			333				219				43				595				—				—				—				—
Adjusted EBITDA		$	57,196			$	28,497			$	3,889			$	89,582			$	56,399			$	33,891			$	4,813			$	95,103

Segment Reporting

 

		Three Months Ended September 30,								Nine Months Ended September 30,
		2019				2018				2019				2018
Segment Net Sales
Food, Health and Nutrition		$	105,174			$	115,132			$	326,783			$	367,159
Industrial Specialties			73,141				65,667				204,064				195,767
Other			11,034				16,135				34,954				46,173
Total		$	189,349			$	196,934			$	565,801			$	609,099
Net Sales % change
Food, Health and Nutrition			(8.6	)%							(11.0	)%
Industrial Specialties			11.4	%							4.2	%
Other			(31.6	)%							(24.3	)%
Total			(3.9	)%							(7.1	)%
Segment EBITDA
Food, Health and Nutrition		$	14,791			$	14,563			$	48,758			$	48,494
Industrial Specialties			8,861				8,885				23,891				26,772
Other			792				2,424				3,833				2,987
Total		$	24,444			$	25,872			$	76,482			$	78,253
Segment EBITDA % of net sales
Food, Health and Nutrition			14.1	%			12.6	%			14.9	%			13.2	%
Industrial Specialties			12.1	%			13.5	%			11.7	%			13.7	%
Other			7.2	%			15.0	%			11.0	%			6.5	%
Total			12.9	%			13.1	%			13.5	%			12.8	%
Depreciation and amortization expense
Food, Health and Nutrition		$	6,959			$	7,142			$	20,128			$	21,677
Industrial Specialties			3,768				3,153				10,714				10,257
Other			403				569				934				1,383
Total		$	11,130			$	10,864			$	31,776			$	33,317

Price / Volume

The Company calculates pure selling price dollar variances as the selling price for the current year to date period minus the selling price for the prior year to date period, and then multiplies the resulting selling price difference by the prior year to date period volume. The current quarter selling price dollar variance is derived from the current quarter year to date selling price dollar variance less the previous quarter year to date selling price dollar variance. The selling price dollar variance is then divided by the prior period sales dollars to calculate the percentage change. Volume/mix variance is calculated as the total sales variance minus the selling price variance. The following table illustrates the percentage changes in net sales by reportable segments compared with the same period of the prior year, including the effect of selling price and volume/mix changes upon revenue:

 

		Three Months Ended												Nine Months Ended
		September 30, 2019												September 30, 2019
		Price				Vol/Mix				Total				Price				Vol/Mix				Total
Reportable Segments
Food, Health and Nutrition			2.7	%			(11.3	)%			(8.6	)%			3.4	%			(14.4	)%			(11.0	)%
Industrial Specialties			1.2	%			10.2	%			11.4	%			2.7	%			1.5	%			4.2	%
Other			(7.6	)%			(24.0	)%			(31.6	)%			(3.3	)%			(21.0	)%			(24.3	)%
Total			1.3	%			(5.2	)%			(3.9	)%			2.7	%			(9.8	)%			(7.1	)%

Summary Cash Flow Statement

INNOPHOS HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statement of Cash Flows (Unaudited)

(Dollars in thousands)

		Nine Months Ended September 30,
		2019				2018
Cash flows provided from (used for) operating activities
Net income		$	16,546			$	31,251
Adjustments to reconcile net income to net cash provided from (used for) operating activities:
Depreciation and amortization			31,776				33,317
Amortization of deferred financing charges			322				322
Deferred income tax provision			242				7,006
Share-based compensation			5,188				4,143
Changes in assets and liabilities:
Accounts receivable			(3,655	)			(2,272	)
Inventories			9,913				(23,094	)
Other current assets			(11,042	)			(9,362	)
Accounts payable			(18,060	)			(1,167	)
Other current liabilities			5,041				10,291
Other long-term assets and liabilities			(11,608	)			(15,071	)
Net cash (used for) provided by operating activities			24,663				35,364
Cash flows used for investing activities:
Capital expenditures			(25,576	)			(47,800	)
Net cash used for investing activities			(25,576	)			(47,800	)
Cash flows provided by (used for) financing activities:
Long-term debt borrowings			51,000				86,000
Long-term debt repayments			(11,000	)			(51,000	)
Restricted stock forfeitures			(235	)			(251	)
Dividends paid			(28,318	)			(28,197	)
Net cash provided by (used for) financing activities			11,447				6,552
Effect of foreign exchange rate changes on cash and cash equivalents			—				181
Net change in cash			10,534				(5,703	)
Cash and cash equivalents at beginning of period			20,197				28,782
Cash and cash equivalents at end of period		$	30,731			$	23,079

Cash From Operations Reconciliation to EBITDA

 

(Dollars in thousands)		Three Months Ended September 30,								Nine Months Ended September 30,
		2019				2018				2019				2018
EBITDA		$	24,444			$	25,872			$	76,482			$	78,253
Operating Working Capital			679				4,061				(22,370	)			(19,446	)
Taxes paid			(10,653	)			(3,792	)			(19,679	)			(16,590	)
Interest paid			(3,928	)			(3,618	)			(11,528	)			(10,398	)
All other including non-cash stock compensation and changes in other long-term assets and liabilities			(2,660	)			3,284				1,758				3,545
Net cash provided from operations		$	7,882			$	25,807			$	24,663			$	35,364

Cash From Operations Reconciliation to Adjusted EBITDA

 

(Dollars in thousands)		Three Months Ended September 30,								Nine Months Ended September 30,
		2019				2018				2019				2018
Adjusted EBITDA		$	29,513			$	32,077			$	89,582			$	95,103
Operating Working Capital			(2,769	)			(992	)			(30,282	)			(32,154	)
Taxes paid			(10,653	)			(3,792	)			(19,679	)			(16,590	)
Interest paid			(3,928	)			(3,618	)			(11,528	)			(10,398	)
All other including non-cash stock compensation and changes in other long-term assets and liabilities			(4,281	)			2,132				(3,430	)			(597	)
Net cash provided from operation		$	7,882			$	25,807			$	24,663			$	35,364

Free Cash Flow Reconciliation to Cash From Operations

 

(Dollars in thousands)		Three Months Ended September 30,								Nine Months Ended September 30,
		2019				2018				2019				2018
Cash from Operations		$	7,882			$	25,807			$	24,663			$	35,364
Capital Expenditures			(9,739	)			(21,325	)			(25,576	)			(47,800	)
Free Cash Flow		$	(1,857	)		$	4,482			$	(913	)		$	(12,436	)

Summary Balance Sheets

INNOPHOS HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(Dollars in thousands)

 

		September 30, 2019				December 31, 2018
ASSETS
Current assets:
Cash and cash equivalents		$	30,731			$	20,197
Accounts receivable, net			106,219				102,564
Inventories			170,290				180,203
Other current assets			35,136				24,094
Total current assets			342,376				327,058
Property, plant and equipment, net			237,803				240,235
Lease right-of-use assets			55,597				—
Goodwill			152,767				152,767
Intangibles and other assets, net			87,301				95,094
Total assets		$	875,844			$	815,154
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable, trade and other			57,850				80,007
Other current liabilities			58,655				49,993
Total current liabilities			116,505				130,000
Long-term debt			340,000				300,000
Long-term lease liabilities			49,077				—
Other long-term liabilities			32,364				49,639
Total stockholders’ equity			337,898				335,515
Total liabilities and stockholders’ equity		$	875,844			$	815,154